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Posted

For all the full line operators out there. What is the minimum you will keep a machine at a location for? In other words, whats the amt you decide to pull a machine out of a location?

Posted

wow... that a hell of a question.

In normal times I'd say I'm looking to make about $50 a week per machine. Right now... I'm not pulling anything, in fact... I'll take any location in this time where I feel like it will grow when the recession is over.

I hear guys on boards like this say all the time they would pull machines from a location not making $150 a week... I think that would be stupid... if you don't have anywhere else to put your machines... don't pull them... and if you do... put something cheaper in there... its all about ROI and growth... if your making less than $100k in revenue a year... you need all the locations you can get...

Posted

I think you have to decide if you have somewhere better to move the machine. If it's selling through product before it expires and you don't have anywhere better to move it to at the moment there's not a lot of point in putting it in storage.

Posted

I agree with ageevending. If you're making $50 a week per machine and have 50 machines out there that's 130,000 in revenue. That is better income than ALOT of people out there who have college degrees and have been at there jobs for more than 10 years.

And depending what you have your machines priced at will obviously determine your profit. I sell all canned soda for $1.00 so profit is pretty good there. Better than 50%

Posted

I am pulling a snack machine today (giving notice). I have one snack machine there and the volume is sopratic. It is averaging $40 a month and I am trashing lots of product. Since volume is sporatic and I don't want to throw out more product, I try to put less product in the machine. On good weeks this means that the machine is sitting empty most of the week. This makes my service look very poor, and is not worth the couple dollars I may make. I have left the machine there until I found a new location for it.

I look at lots of factors when I'm deciding to pull a location:

Pricing - Do you have good margins there?

Transportation cost - How far is your closest location? Is the machine on the top floor of a 10 story building that you need to sign in and get 3 different "visitor" badges for?

Equipment cost - Is the machine new, refurb'ed, or an ebay special?

Service quality - Will the people that see the machine know what I want them to know about my company?

Wasted product - How much product (in $$) do you throw in the trash and what does this do to any potential profit you might make.

Potential - I may keep a losing location if there is potential to gain more locations (ie a machine in the smallest office of a five location company)?

JD

Posted

Great info JD, Thanks

Andy

 

No problem!

Like Agee wrote, I used to say "I'm not pulling the truck over for less than $75". The more I think about it, its just not that simple.

 

JD

Posted

hey coinvestor... where is your location... I'll drop my combo there :)

I always feel bad when I pull a machine from a location that would like to have one. Maybe a combo would not be a bad thing there. If they pulled the Pepsi machine I could put in a combo machine, this would bump up sales.

 Agee, I just noticed the sad smiley next to the cold food machine. I love it!

JD

Posted

yes... and I'm going to put a sad smiley next to these damn coffee machines... I've added several accounts so I'm up to 5 food and I have 2 frozen now.. which i love... If you can find a good national combo... you'll love it.. you can get one from vendor supply for about 1295..

Posted

yes... and I'm going to put a sad smiley next to these damn coffee machines... I've added several accounts so I'm up to 5 food and I have 2 frozen now.. which i love... If you can find a good national combo... you'll love it.. you can get one from vendor supply for about 1295..

What kind of frozen machine do you use?
Posted

I use an AP... AP makes a snack unit, mine is a 123 that you can slave a frozen to. It is really nice... less food waste more product choices and smaller foot print... the I got the whole unit for 3500

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